Stevanato Group S.p.A.

Good afternoon, this is the Chorus Call Conference Operator. Welcome and thank you for joining the Stevanato Group Third Quarter 2025 Financial Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Ms. Lisa Mile, Chief Communication Officer. Please go ahead, Madam.

Good morning, and thank you for joining us. With me today, I have Franco Stevanapto, Chief Executive Officer, and Marco De Lago, Chief Financial Officer. A presentation to accompany today's results is available on the Investor Relations page of our website under the Financial Results tab. As a reminder, some statements being made today are forward-looking and based on current expectations. Actual results may differ materially due to risks outlined in Item 3D, Risk Factors, of our most recent annual report on Form 20F filed with the SEC. Please review the Safe Harbor Statement included at the beginning of today's presentation and in our press release. The company undertakes no obligation to revise or update these forward-looking statements except as required by law. Today's presentation may include non-GAAP financial information. Management uses these measures internally to assess performance and believes they may be helpful for investors in evaluating the quality of our financial results, identifying trends in our performance, and providing meaningful period-to-period comparisons. For reconciliation of these non-gap measures, please refer to the company's most recent earnings press release. And with that, I will hand the call over to Franco Stevinotto.

Thank you, Lisa, and thanks for joining us. Today, we will review our third quarter performance, share updates on our investment projects, and discuss the current market environment. we delivered another solid quarter of financial results, driven by revenue growth, a record mix of high-value solutions, and continued margin expansion. Our third quarter financial results exceeded our expectations. We benefited from favorable timing of some product shipments in the BDS segment that were previously scheduled to occur in the fourth quarter. Relative to the same period of last year, we also faced headwinds from foreign currencies at certain tariff costs. that were not mitigated, which tempered margins in the third quarter. These impacts were already assumed in our guidance. As a result, we remain on track to meet our 2025 guidance. This underscores the momentum we are experiencing from executing our strategic roadmap. As we leverage and scale our gross investment in capacity expansion to meet the increased demand for high-value products. Third quarter revenue increased by 9% year over year, driven by the continuous strong performance of our BDS segment, which grew by 14%. This was primarily fueled by demand in our core drug containment business. As expected, revenue from the engineering segment declined as we continued implementing our business optimization plan. Our solid performance in the third quarter was underpinned by a remarkable 47% growth in high-value solutions. driven primarily by NEXA syringes and, to a lesser extent, easy-fill vials. The NEXA platform is optimized for sensitive biologics and its high mechanical resistance makes it ideal for the seamless integration of auto-injectors. A core pillar of our long-term strategy is built around meeting the demands of high-growth markets such as injectable biologics, which require premium containment and delivery solutions. These are often sensitive drugs that require specialized glass or ready-to-use containers to maintain stability and integrity and ensure patient safety. Our easy-fill portfolio and our ongoing investments in growth capacity are intended to support customers' innovation programs in drug development and lifecycle management. As the pharma industry shifts to ready-to-use platforms that deliver superior quality, simplify processes, and enhance operational flexibility, our easy-fill cartridges are setting a new standard. Most recently, they were selected by a leading manufacturer for use with a GLP-1 biosimilar for type 2 diabetes, one of the first to receive FDA approval and launch commercially in the United States. Engineered for optimal performance in handheld injection devices, easy-fill cartridges offer seamless compatibility with pan-injector systems, helping accelerate time to market while ensuring reliability and patient convenience. The continued growth in biologics, rising pharmaceutical innovation, and the increasing trend towards self-administration of medicine remain strong secular tailwinds for our business. Solid demand for high-value solutions and collaboration with customers on ready-to-use products illustrate why we believe we are well positioned to meet evolving industry demands and support patient-centric solutions. Turning to the engineering segment, the team continues to make meaningful operational progress against our business optimization plan. Over the past year, we have been squarely focused on executing effectively and meeting our customer commitments. While the steps we are taking have yielded operational improvements, our financial performance is below our expectations. We believe that getting the segment back to historical performance levels is going to take more time as we refresh the workload with new projects and reposition the segment for stronger profitability. We have a healthy pipeline of new opportunities across the engineering segment. However, converting that pipeline into new orders has been slower than we anticipated. First, as I mentioned during last call, we are strengthening the sales organization with fresh expertise and refining our commercial processes. We expect to harvest the benefits of these initiatives in the coming quarters. Second, several pending opportunities in our pipeline are repeat orders from existing key customers. The good news is that we have received positive feedback on the performance of recently installed manufacturing lines. So, we are cautiously optimistic that the current slowdown in order flow is only temporary. We believe the long-term demand landscape for our manufacturing technologies remains strong as the industry expands its capacity to satisfy ground demand for injectable biologics and devices. Customers are investing in new capital projects as they ensure more core operations in the United States and upgrade their technology to meet higher quality standards and more stringent regulations, such as Annex I. Many major pharmaceutical players have announced extraordinary investments dedicated to U.S. manufacturing operations, This, coupled with organic growth from on-cycle investments and growth in emerging markets, provides us with added confidence in the demand outlook. Let's turn to an update on our capital investment projects in Fisher and Latina. In Fishers, we have several syringe lines running commercial production at various stages of ramp-up. At the same time, we will continue to install additional syringe lines and validate customers for the rest of this year and throughout 2026. Our first vial lines are being installed and qualified with customer validation expected to begin in mid-2026. We are also advancing the build-out for contract manufacturing activities in support of a couple of large device programs. The new clean room is nearly completed. The first injection molding machines are on site and scheduled for installation in the coming months. We still expect commercial activities to begin at the end of 2026 or early 2027. In Latina, we are scaling commercial production for Nexus ranges, which will continue into 2026. Preparations are underway for the next phase of easy-fill cartridge production to meet the rising demand for ready-to-use cartridges. This next phase will be powered by our new RTU-400 easy-fill cartridge lines. They have a fully automated, ready-to-use process designed to ensure accepting integrity, increase production capacity, and provide superior container quality. Our capital investments are helping us meet rising market demand for our core drug containment products, amid the growth in biologics, which continue to become a large portion of our portfolio each year. Before closing, I would like to thank our teams around the world on an important ESG milestone. We were recently awarded the Covadis Silver Medal. This puts us in the top 15% of companies assessed globally and a 92nd percentile in our industry. This recognizes our strong performance and reflects our commitment to embed sustainability into our operations and strengthen our ESG practice. I will now turn the call over to Marco.